There’s nothing quite like the feeling of building your home from the ground up. It’s like slowly watching your dream come true with the final result being the house that you’ve always wanted.
But it can also be easy to get so caught up in the process that you forget to consider some very important aspects. And those can end up being mistakes that will unnecessarily complicate things now and in the future.
Here are some major mistakes to avoid:
1. Not having all the details in place
There are an overwhelming number of choices when it comes to designing and building a home. From choosing the type of flooring to deciding what cabinets go best in the bathroom, it’s best to have these details in order before the building process begins. Waiting could cost you and your contractor time.
2. Don’t overdo it on your mortgage
One thing to always keep in mind is that you can add to your home later. In other words, build the home that realistically fits your budget now instead of building the house of your dreams before you’re financially ready. Go with more modest layouts now with the goal of renovating them later.
3. Not thinking of the resale value now
While it doesn’t seem to make sense that you should be thinking of a home’s resale value while you’re having it built, it’s always a good thing to keep in mind. You may have to sell it in the future, or you may pass it on to your descendants (who could one day sell it).
4. Not hiring a real estate agent
While there will be a sales agent on-site who can explain things, that agent is working for the seller and developer, not you. A real estate agent will work on your behalf and represent you during the construction process.
5. Not doing enough research
Do all the research you can before choosing your builder. You should know how much – and what kind – of insurance they carry, whether they use independent subcontractors (who should also be licensed and bonded), and whether they are in good standing with your state’s Construction Contractor’s Board. If possible, talk with past clients.
6. Not being a presence at the construction site
While you may not need to be at the construction site daily, it’s important to be a presence during the building process. You’ll want to make sure that things are matching your expectations and ask questions when they don’t. Don’t keep yourself in suspense until the home is finished.
7. Not budgeting wisely
Budgets are always important, including when you’re building a home. Make sure that you’re staying within your budget during construction but also have a slush fund that takes into account unforeseen circumstances. After all, incidentals are likely to pop up.
Are you looking to build your first home? Contact the professionals at the Peoples Bank Home Loan Center to help you with financing.